Commercially, asking if the (gaming) PC is dead is a valid question. Given that a B-grade PS2 games reportedly sell more units than A-grade PC titles, its not hard to start wondering if the PC games scene is on the decline.
Unlike consoles, the PC isnt a one trick horse, its primary functions are practical, day to day functions. Id compare it to a family car whereas a console is more like a motorcycle.
Another thing the PC has going for it is market entrenchment, they're almost ubiquitous. Console makers can only dream about PC-like market values. This situation isnt going to change overnight nor is it going to lose significant momentum any time soon.
It's human nature to make the most of an expensive device. I think the majority of PC games are bought by people who own a PC for practical purposes and just buy the odd game to play on the thing as well. There will always be people willing to tap this market. Additionally, the niche that do buy PCs for games, arent suddenly going to defect to what has always been seen as inferior technology.
Technically, if the specs of the next gen consoles are anyting to go by, there's not too much for the PC to get worried about. Dual GPU's, multicored 64bit CPU's and RAM measured in gigabytes are already here. Dedicated Physics Processors and fibre-optic interconects are just around the corner.
